ISLAMABAD – Federal Energy Minister Awais Leghari announced that discussions with the International Monetary Fund (IMF) and Independent Power Producers (IPPs) could reduce electricity costs by Rs 10-12 per unit.
Ongoing Savings from IPP Negotiations
Leghari highlighted the progress made in negotiations with IPPs, resulting in significant cost savings for the public. He shared that they have already saved Rs 1,100 billion and expect further savings in the upcoming phase, which will focus on government-operated power plants.
| Phase | Details | Expected Savings |
|---|---|---|
| Initial IPP Negotiations | 5 IPP agreements concluded | Rs 1,100 billion |
| Upcoming Phase | Focus on government power plants | Additional savings |
| Pending Review | 15 IPP agreements to be presented | Significant savings |
Review of Additional IPP Agreements
According to Leghari, 15 new IPP agreements will soon be presented to the cabinet for approval. The goal is to ensure long-term reductions in electricity costs by renegotiating agreements that currently burden the public with higher tariffs.
NEPRA’s Decision on K-Electric’s Tariff Demand
Addressing concerns about K-Electric, Leghari criticized the company for seeking a multi-year tariff increase, which he deemed excessive. He assured that NEPRA would assess the demand and ensure that it upholds the public’s best interests.
| Company | Demand | Minister’s Remarks |
|---|---|---|
| K-Electric | Rs 500 billion profit over 5-7 years | Unjustified; must be reviewed by NEPRA |
Addressing Kunda Culture and Power Theft in KP
Leghari also discussed the persistent issue of Kunda Culture (illegal electricity connections) in Khyber Pakhtunkhwa (KP). Despite agreements to open electricity supplies to high-theft feeders, administrative inefficiencies have resulted in a Rs 6 billion loss.
| Region | Issue | Losses |
|---|---|---|
| Khyber Pakhtunkhwa | Power theft (Kunda Culture) | Rs 6 billion |
Revised Biomass Power Tariffs Approved
Leghari revealed that the cabinet approved revisions to tariffs for eight biomass-based power plants. Agreements with five IPPs have already ended, and negotiations with 16 additional IPPs are ongoing. The focus is now on revising costs for government power plants to further reduce electricity prices.
| Energy Source | Status |
|---|---|
| Biomass | 8 revised tariffs approved |
| IPPs | 5 agreements ended, 16 ongoing |
| Government Power Plants | Next phase of negotiations |
Minister’s Call for Action on K-Electric’s Excessive Profits
Leghari concluded by accusing K-Electric of seeking an unjustified Rs 500 billion profit over the next five to seven years. He urged NEPRA to thoroughly review the request, emphasizing that the decision will significantly affect consumers, especially in Khyber Pakhtunkhwa.
